New Delhi, Aug 18 (UNI) UTV Interactive, the gaming arm of UTV Software Communications Ltd, has entered into definitive agreement to acquire 80 per cent stake in True Games Interactive, a US-based online game publishing start-up.
No other financial details were divulged.
This acquisition is in keeping with UTV's strategy of inorganic growth that the company has achieved in the past 18 months in the ''interactive'' vertical through acquisitions of UK-based console developer, Ignition Entertainment Ltd and Indiagames Ltd, the Indian mobile gaming company.
With this acquisition, UTV has achieved presence across all platforms of gaming: Console, Online, Mobile, which spells dynamic synergies across the Interactive Vertical going forward.
Talking about the agreement, CEO of UTV Interactive Preneet Malhotra said, ''online gaming is the platform of the future once broadband penetration reaches across world markets. While this phenomenon is led by Asia, it has started gaining traction in the west as well. The True Games acquisition gives UTV not only presence in the international online gaming space, both in content creation and publishing but is also a major step towards achieving UTV's 360 degree gaming vision.'' During UTV's first quarter result in July, company promoter Ronnie Screwvala had said the company will invest 75 million dollars in its gaming division. He added that 30 million dollars will be used for acquiring majority stake in an overseas online gaming company.
It has also earmarked 37 million dollars (of the 75 million dollars) to develop three high-end console games and working capital of Ignition--its gaming firm--for its facilities in London, Florida and Tokyo.
True Games brings to UTV Interactive, a model that is totally focused on the online multiplayer online game model, which accounts for almost half of the worldwide online game revenues.
At the same time, its gets UTV started in the online gaming space with development, IP ownership and publishing, which is in keeping with the UTV group business model of B2C and creating and owning intellectual property rights.
In addition, the True Games business model includes group content and publishing expertise in emerging markets like Turkey and India, among others, in the future.
''The benefits and opportunities that come with joining the growing UTV Interactive family are endless. With this partnership, we have not only received financial backing, but have also joined a group that offers vast expertise and experience in many areas of entertainment,'' True Games Interactive CEO Bob Drobish said.
Founded in January 2008, US-based True Games Interactive is located in California.
True Games Interactive publishes international multiplayer online games through development, aggregation, licensing, publishing and distribution throughout world markets.
UNI AR SR BD1850